YES Bank said on Tuesday that it has listed $600 million bond issued under its maiden $1 billion medium term note (MTN) programme on Global Securities Market (GSM) of India INX, the country’s first international exchange located at International Financial Services Centre, GIFT City in Gujarat.
“This is the largest debut international bond issuance by an Indian bank,” YES Bank said in a statement.
The listing ceremony was presided over by Gujarat chief minister Vijaybhai R Rupani, it added. Rupani also inaugurated the bank’s new IFSC office in the GIFT City in the presence of J N Singh, Chief Secretary of Gujarat and Sudhir Mankad, GIFT City Chairman.
According to the release, the MTN bonds issuance received good response from international investors and saw a final order book, at a spread of 130 basis points, being oversubscribed by over 1.83 times from 90 accounts.
“In terms of geographic distribution, Asian accounts received 58 per cent of the allocation, EMEA (Europe, the Middle East and Africa) received 41 per cent and offshore US accounts received 1 per cent,” it added.
The bond is also listed on London Stock Exchange International Securities Market and Singapore Exchange Securities Trading Limited, it said.
Speaking on the occasion, Rana Kapoor, managing director and CEO of YES Bank, said, “YES Bank will use the proceeds to fund the bank’s IFSC Banking Unit (IBU) in Gift City and expand IBU’s rapidly growing business opportunities. IFSC received a major boost in the Union Budget with the proposed unified regulator and enabling tax benefits.”
Foreign players have started noticing IFSC, said India INX CEO V Bala said. “IFSC at GIFT City has received new impetus in Union Budget this year. This will increase the momentum of growth and would attract the best of the global investors to consider IFSC in India to invest and trade in world’s fastest growing economy,” said S Ravi, chairman of BSE.